Megawatt Park, Monday, 13 September 1999
Ceremonial greetings,
I feel deeply honoured and privileged this morning to be addressing you. From the outset I want to express the sincere appreciation of the government of President Thabo Mbeki for the outstanding work that Eskom is doing. I have no doubt that the many accolades that Eskom receives and rightfully deserves, is in no small measure due to the efforts and hard work of the women and men that daily turn the nuts and bolts, or should I say watts and volts of this company.
President Thabo Mbeki in his opening speech to Parliament earlier this year sketched a portrait of our nation at work to create a better life for all our people. He reminded us that the victory we achieved in 1994 and improved upon in 1999 was the result of the sweat, tears and sacrifice of women and men, young and old, and the abled and challenged; each making a contribution in their unique way.
President Mbeki also reminded us that though we have achieved much as a nation over the last five years, the challenges that lie ahead are still numerous. Central to the challenges that we face as South Africans is the task of developing a new patriotism. A sense of who we are and what we are all about at this moment in history. A sense of what it means to be South African and African at the dawn of the new millennium; of developing an understanding of the historic task that awaits us as we strive for renewal and development of Mother Africa.
I have no doubt that by the very nature of the work you do, you have a deep commitment to making South Africa work. It is for this reason that I believe that you will, and indeed, are responding to the President’s call to all of us to pool our efforts in accelerating change. It is only through joining in the spirit of partnership that we are able to improve the living conditions of all our people. The renewed and strengthened mandate that you gave our ANC-led government earlier this year, is sufficient proof of your support of the programme and policies that we are pursuing. It is a manifestation of the fact that over the past five years government has started to deliver in the key area of addressing the basic needs of especially the poor. It is perhaps no small co-incidence that Eskom played an important role in the process of service delivery to our people through its electrification programme. The commitment of Eskomites, management and workers, to making this particular programme an overwhelming success speaks volumes for your patriotism and sense of contribution to the national objectives of development, peace and prosperity for all our people.
Through the partnership between government, the private sector and civil society, we are able to start pushing back the terrible legacy of apartheid. We are able to start redressing the skewed development patterns that characterised the old order. We are able to strengthen the foundations of building a truly united, non-racial, non-sexist and democratic society.
As we push forward to strengthen these foundations even further, the severe limitations on our resources mean that we need to change the work regimes that characterise so many state-owned enterprises(SOEs). We need to imbibe the new values required to confront the enormous challenges that face us. We also need to ensure that the programmes we pursue are indeed sustainable and meaningfully contribute to improving the quality of life of people. As we intensify the roll-out of the electrification programme and other bulk and vital services, we are beginning to change the face of apartheid cities. Slowly we are beginning to create the conditions required for generating new opportunities for economic growth and social development.
The challenge of the Mbeki administration over the next five years, is to ensure that there is greater co-ordination and integration of programmes of rural development and urban renewal. We need to ensure that there is synergy between Eskom and all other parastatal’s social delivery programmes and the accelerated delivery agenda of government. This is the only way that we are going to multiply the socio-economic impact of our limited resources. This is the only way that we can give material expression to the new patriotism that the President has called for.
What does this mean for public enterprises and what does it mean for Eskomites directly. I believe that it means doing what we are currently doing, doing it better, more cost-efficient, more effective and ensuring that it is sustainable and that there is an improved return for the shareholder, government. For our new Department of Public Enterprises, it means that we must rigorously pursue the restructuring of state-owned–enterprises so that we are able to improve the productivity and competitiveness of these entities. It also means that we must accelerate the process of creating opportunities to widen the ownership patterns in the South African economy.
In the process, we realise the critical importance of seeking improved partnerships with the private sector in order to mobilise private sector capital for enhanced delivery. This is also essential in order to enhance the effective provision of services whilst contending with budgetary limitations. To attain our vision of being a centre of excellence for public-private partnerships, we will have to advocate and actively pursue a wide and varied range of partnership models that will add value to the process of alternative service delivery.
What is clear from the experience of the last five years is that there is a need to monitor the performance of SOEs more closely. We need to ensure that institutions such as Eskom, continue to show an improved financial performance to secure a healthy return for government on its valuable investment. We also need to ensure that these institutions function on sound financial management policies and appropriate corporate governance protocols that lay the foundations for the healthy functioning of these institutions and clearly spell out the parameters of operation and areas of responsibility.
Across the public sector we have been monitoring the compliance with government’s policy on empowerment. I believe that despite the enormous potential and huge opportunities that arise, there remains very little commitment from public sector managers to give flesh to this instrument of democratising our economy. A cursory glance at the statistics clearly indicates that the billions of rands that annually are spent on procurement of goods and services are still largely the preserve of established white business. This must and will change fast and drastically. We cannot pursue or tolerate any business-as-usual attitudes to transformation.
In short then, my department will for the next five years strive to ensure that there is an improved return on investment from state assets. This includes an actual financial return as well as the broad social returns and the development impact that can be achieved through an accelerated and broader process of restructuring and transformation.
We believe that this is attainable by ensuring that there is greater integration in the activities of SOEs across sectors in order to rationalise their business processes and market potential for the greater benefit of the citizens of South Africa.
We also need to ensure that there is better alignment of public enterprises processes and outputs with the social, economic and political objectives of government. Our vision is to go beyond the traditional boundaries and opportunities for empowerment and extend this to areas such as investment, capacity, development, operational joint ventures, and community collaborative partnerships in a sustainable manner.
As a centre of excellence, I believe Eskom has already made tremendous strides towards these objectives. We want to see you taking this commitment even further. I am particularly impressed with the range of innovative partnerships that we are extending with our neighbours in the Southern Africa region and beyond.
In view of President Mbeki’s leadership in pursuit of an African Renaissance, it is perhaps fitting then that Eskom plays such an important role in building partnerships and lighting up the lives of millions in our country, our region and our continent
It is said that ‘in your vision lies your future’. If this is true, then Eskom’s vision of being the world’s lowest cost producer of electricity for growth and prosperity reflects the wisdom of this company’s leadership and the commitment of the ordinary worker to making that vision a reality. I believe that you all have reason to be proud of belonging to a winning company, not only on the domestic market but in the Southern African region and the African continent as a whole.
I want to share with you my excitement and jubilation at the launch of Eskom Enterprises on Saturday evening. The function was indeed impressive and I have every reason and full confidence that this subsidiary of Eskom will be as relentless and single-minded in its ambition to serve the interest of our beloved country, as the holding company. In fact, as the new kid on the block, our expectations are that it must out-perform all other units of Eskom or equal their prestigious achievements.
I want to send a special message to all Eskomite workers gathered here today, and especially those that join us from other centres all over the country via this live transmission; you are our most valuable asset. In your daily work routine you are shaping the landscape of our African Renaissance. You giving real meaning to what is best in the values and traditions of Africa. Your efforts generate the power that sustains the dreams and visions of our continent. Your labour is the bedrock of our economic emancipation and translates our socio-economic programmes into veritable action. Most importantly, you are making a difference in the quality of life of all our people. In the deepest and most remote rural areas, you are bringing light, warmth and power.
You have every reason to take great pride in being an important part of this dynamic company. You are world-leaders in many respects and we take pride that Eskom is the fourth largest utility of its kind in the world. We take pride that Eskom is the second lowest-cost producer of electricity in the world. We take pride in the fact that Eskom generates more than half of the electricity on the African continent and 95% of South Africa’s total needs. We take pride in the fact that through your outstanding efforts, more than two million homes have been electrified since 1991. But most of all we take pride in you, the quality of your contribution and the fact that you are taking your destiny into your own hands and holding out a shining and radiant light amidst the many challenges that we face as a nation. I am confident that our partnership will grow in strength as we walk together towards a better future for our children, their children and all future generations of South Africans. In time your contributions will be sung in songs of praise and will reverberate on the beat of our African drums.
The African Century awaits us, let us walk that journey together. We are a nation at work building a better life for all our fellow citizens and the entire continent. On behalf of government, I am proud to be associated with this dynamic family at Eskom and look forward to five years of hard work, dedication and commitment. My doors remain open to you at all times. We have the power, lets make it happen.
Today, our slogan takes new meaning:
Power to the people!
Power to the people!
Power to the people!
Long-live Eskom, Long live!
I thank you!